Bonus Shares and Rights Issues

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Bonus Shares and Rights Issues

    I am a bit confused about Bonus Shares and Rights Issues.<BR><BR>The example I am working on reads:-<BR><BR>April 1995 Rights Issue 1 for 5 £10 each<BR><BR><BR>How do you work this out please.<BR><BR>Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Bonus Shares and Rights Issues

    it should be Something like this:-<BR><BR>April 1994 bought share of 1000 for £15 each<BR>April 1995 rights issue 1 for 5 at £10 each<BR><BR>This means <BR><BR>1000/5=200 share were issued at the price of £10 costing £2000.00<BR><BR>Its impossible to issue rights without any share in the FA 1985 Pool.<BR><BR>i think it will help.<BR><BR>Arjun
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Bonus Shares and Rights Issues

    Ah yes, thats the formular I need.<BR><BR>Thank you
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Bonus Shares and Rights Issues

    Thats a great help cheers!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Bonus Shares and Rights Issues

    hi <BR>further explanation for rights issue but it will be bit different for the bonus issue. bonus issue will not raise the total amount but only the share amount.<BR><BR>April 1994 bought share of 1000 for £15 each<BR>April 1995 rights issue 1 for 5 at £10 each<BR><BR>This means <BR><BR>1000/5=200 share were issued at the price of £10 costing £2000.00<BR><BR>Now the working will be<BR><BR>April 1994 Purchase 1000 £15000.00<BR>April 1995 Bonus Issue 200 £2000.00<BR><BR>Total 1200 £17000.00<BR><BR><BR>i think it will help.<BR><BR>Arjun

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